POSCO ADR earnings missed by $0.60, revenue topped estimates

POSCO Holdings Inc. shares fell 4.06% after NH Investment & Securities cut its price target by 8.9% to 410,000 won, citing slower-than-expected recovery in steel and lithium businesses. The firm also reduced its 2027 operating profit estimate by 10.5% to 3.791 trillion won. Q3 results beat expectations, with operating profit up 47.9% YoY, but Q4 is expected to be challenging.

POSCO International (047050.KS) reported Q3 operating profit of 400.7 billion won, exceeding estimates. Energy and palm oil divisions drove growth, with gains in Australia's Senex and power generation. Analysts highlight long-term U.S. LNG contracts and asset acquisitions as growth drivers, despite expected Q4 declines due to maintenance.

Shinhan Investment & Securities raised POSCO FUTURE M's target price to 200,000 won, citing growth in LFP cathode sales. The company expects cathode shipments to double by 2027, with LFP exceeding 50% of sales. POSCO FUTURE M's Q3 sales and operating profit rose 23% and 207% YoY, respectively, driven by energy materials unit.

POSCO International reported a 24% year-over-year increase in Q3 operating profit to KRW 400.7 billion, exceeding expectations. The company benefits from surging gas prices and plans to expand gas assets. Meritz Securities maintains a 'Buy' rating with a target price of KRW 90,700, citing a 6.3% dividend yield and strong earnings potential.

POSCO Holdings (PKX) reported Q3 revenue of KRW 19.14T and operating profit of KRW 945B, up 15.3% QoQ and 47.9% YoY. Improved steel profitability drove earnings, but net profit fell 50.1% QoQ to KRW 380B. Spark rates PKX as Neutral, citing weak free cash flow and compressed profitability despite a strong balance sheet.

POSCO reported Q3 2026 revenue of 9.96 trillion won, up 5.8% sequentially and 13.2% year over year. Operating profit rose 66.1% from Q2 but fell 22.1% year over year, while net profit dropped 85.6% sequentially and 98.1% year over year to 10 billion won. For the first nine months, revenue increased 6% to 28.31 trillion won, but operating and net profits declined significantly. The figures are subject to audit.